Exhibit 1 Condensed Operating and Stockholder Information, Robertson Tool Company (millions of dollars except per-share data) 1998
1999
2000
2001
2002
$ 48.5
$ 49.1
$ 53.7
$ 54.8
$ 55.3
32.6
33.1
35.9
37.2
37.9
10.7
11.1
11.5
11.9
12.3
2.0
2.3
2.4
2.3
2.1
.4
.7
.8
.8
.8
Income Before Taxes
2.8
1.9
3.1
2.6
2.2
Taxes
1.1
.8
1.2
1.0
.9
Net Income
$1.7
$1.1
$1.9
$1.6
$1.3
O/ Income
3.201
2.6023
3.9201
3.3976
2.9862
Cost of Goods
67%
67%
67%
68%
69%
Sell, Gen!l, Admin"
22%
23%
21%
22%
22%
Operating Income
6.6%
5.3%
7.3%
6.2%
5.4%
$ 2.91
$ 1.88
$ 3.25
$ 2.74
$ 2.23
1.60
1.60
1.60
1.60
1.60
Boo# %al&e er S$are
49.40
49.68
51.33
52.47
53.10
'ar#et rice
33-46
35-48
29-41
25-33
23-32
rice/Earnings rice/Earnings (atio
11-16
10-26
9-13
9-12
10-14
584,000
584,000
584,000
584,000
584,000
Operations Sales Cost of Goods Selling, General and Administrative Administrative Costs Depreciation Expense Interest Expense
ercentage of Sales
Stoc#$older Information Earnings er S$are Dividends er S$are
S$ares O&tstanding
68.54% 22.24% 3.80% 1.45% 3.98% 0.392857 0.421053 0.387097 0.384615 0.409091 0.409091 1.63% 2.35%
Exhibit 2 alance Sheet at !ecember "#, $%%$, Robertson Tool Company Assets
(millions of dollars)
Liabilities and Net Worth
$ Amount $ 1
Cas$ Acco&nts (eceiva)le Inventories
8
C&rrent Assets
28
Net lant and E*&ipment
19
Total Assets
Ote!
18 1
Ot$er
Accounts Payable
$ 47
Collection eriod +das-
53
Das of Inventor +das-
173
Sales/Total Assets
1.18
$ 2 2
"u!!ent #abltes
4
#on-te!m &ebt
12
'et (o!t
31
)otal
$ 47
&ebt as % "a*tal
28%
)otal Assets+'et (o!t
1.52
Exhibit 3 Condensed Operating and Stockholder Information, &!' Corporation (millions of dollars except per-share data) 1998
1999
2000
2001
2002
Sales
$ 45
$ 97
$ 99
$ 98
$ 100
Net Income
1.97
3.20
3.20
1.13
2.98
$ 25
$ 46
$ 49
$ 41
$ 46
6
11
15
10
13
Net 0or#ing Capital
19
35
34
31
33
ong1term De)t
10
18
16
15
17
S$are$olders! E*&it
21
36
40
41
41
$ .78
$ .61
$ .59
$ .21
$ .54
0
0
0
0.20
0
Boo# %al&e er S$are
8.31
6.86
7.37
7.38
7.45
'ar#et rice
6-17
10-18
7-18
4-10
5-8
rice/Earnings (atio
8-22
16-30
12-31
19-48
9-15
2,525,600
5,245,900
5,430,100
5,510,000
5,501,000
Operations
.inancial osition C&rrent Assets C&rrent ia)ilities
Stoc#$olders Information Earnings er S$are Dividends er S$are
S$ares O&tstanding
Exhibit 4 'roormas for Robertson Tool (millions of dollars) Actual
Forecasts
2002
2003
2004
2005
2006
$ 55.3
$ 58.6
$ 62.1
$ 65.9
$ 69.8
Cost of Goods
37.9
39.8
41.6
43.5
45.4
Gross rofit
17.4
18.8
20.5
22.4
24.4
Sell 2 Admin
12.3
12.3
12.4
12.5
13.3
Depreciation
2.1
2.3
2.5
2.7
2.9
EBIT
3.0
4.2
5.6
7.2
8.2
Tax 3 456
1.2
1.7
2.2
2.9
3.3
EBIAT
$ 1.8
$ 2.5
$ 3.4
$ 4.3
$ 4.9
CoGS 6 Sales
69%
68%
67%
66%
65%
Sell 2 Admin 6 Sales
22%
21%
20%
19%
19%
$ 19.0
$ 20.7
$ 21.7
$ 22.6
4.0
3.5
3.6
3.8
2.3
2.5
2.7
2.9
$ 20.7
$ 21.7
$ 22.6
$ 23.5
Sales
Net lant 2 E*&ip 3 Beginning of 7ear Capital Expendit&res Depreciation Expense Net lant 2 E*&ip 3 End of 7ear
200 to !n"init#
$ 69.8 45.4 24.4 13.3 2.9 8.2 3.3 $ 4.9
65% 19%
$ 23.5 2.9 2.9 $ 23.5
Exhibit 5 ie-*ear orecast of +onmoth, Inc .arnings, .xclding Robertson Tool except per-share data)
'et ncome /a!es Outstann ml a!nns Pe! /a!e
(millions of dollars
2003
2004
2005
2006
200
$ 11.0
$ 11.9
$ 12.8
$ 13.8
$ 15.0
4.21
4.21
4.21
4.21
4.21
$ 2.61
$ 2.83
$ 3.04
$ 3.27
$ 3.56
Exhibit 6 Selected inancial Information on /asi-Comparable irms, $%%$ Actuant $or%&
"ollecton Pe!o ays
'ri((s ) *tratton
!dex $or%&
Lincoln Electric
*na% +n !nc&
*tanle# Wor,s
-obertson .ool $o&
55
77
47
61
96
77
53
12%
18%
13%
17%
18%
16%
33%
O*e!atn a!n % /ales
17%
13%
20%
15%
10%
15%
5%
etu!n on "a*tal
21%
9%
10%
12%
11%
14%
4%
3.8
3.2
7.1
11.5
7.8
9.3
3.5
30%
27%
29%
40%
nento!y % /ales
)mes nte!est a!ne &ebt % "a*tal
on atn alue o !m $ ml A) $ ml A) ult*le
D/E •
balance seet alues
98%
52%
•
ma!
29%
37%
20%
17%
19%
24%
-
-
A
A
$ 712
$ 1,443
$ 1,191
$ 1,145
$ 1,861
$ 3,014
$ 29
55
119
98
90
129
234
1.80
12.8
12.1
12.2
12.7
14.4
12.9
16.1
Equity%cap.
28% 0.388889 0.37 0.587302
0.63
-
/a!e P!ce
$ 42
$ 42
$ 29
$ 22
$ 26
$ 27
$ 30
a!nns Pe! /a!e
2.80
3.20
2.00
1.78
1.80
2.32
2.32
P!ce+a!nns
15.0
13.1
14.5
12.4
14.4
11.6
13.5
:uty eta
1.00
1.00
1.00
.75
1.05
.95
)a;
Asset eta
.71
.63
.80
.63
.85
.73
0.73 eta #ee!e
40% 0.98047619
Exhibit Information on 0nited States Capital +arkets
I Interest Rates in +ay $%%" "%-*ear 0S
0S Corporate onds Rated
Treasry onds 2#%3
11
1
24$3
4%53
6%53
5763
Re
II .stimated +arket Risk 'remim 8 443 oer "%-*ear 0S Treasry onds
''
R R(acc
III +edian 9ales of :ey Ratios by Standard ; 'oors< Rating Category 111
BBB
11
1
47
"2
#4 3&5 $" 6.375
Robertson Times Interest .arned (=)
$5"
#>%
#%2
.IT!1 ? Interest (=)
"#%
$#2
#$>
56
26
're-tax Retrn on Capital (3)
$4$
$42
#75
#4#
#$4
!ebt as 3 Capital (3)
#$6
"6#
">2
2"5
4#7
527 37%
&mber of companies
6
#4
##>
$#"
$75
"24
I9 !ebt and Times Interest .arned Ratios for Selected Indstries 111
11
1
ood 'rocessing !ebt 3 Capital
223
-
4#3
423
4"3
57
-
65
2"
$7
!ebt 3 Capital
-
-
"63
2>3
5$3
Times Interest .arned
-
-
5"
"$
#6
!ebt 3 Capital
-
263
423
453
5"3
Times Interest .arned
-
2%
"2
$5
$%
Times Interest .arned .lectrical .@ipment
.lectric 0tilities
>>
Rf
6.07% & 11.4626% 7.87% 8.97%
B levere !"#t pre"iu"$ 0.980476 5.50%
Robertson Corporation Discounted Cash Flow Analysis )perati*+ ,ce*ari1 i ear -*ve*ti-* Sales
Historical eriod 1998 1999 2000 ! "#.5 ! "$. ! 53.7
6 Gro8t$
NA
Cost of Goods
1.24%
9.37%
32.6 33.1 35.9 ! 5.$& ! 6.&& ! 7.#& 32.78% 32.59% 33.15% 10.7 11.1 11.5 5.' ".$ 6.3 10.7% 10.0% 11.7% 2 2.3 2.4 3.' '.6 3.$ 6.6% 5.3% 7.3% 1.28 1.04 1.56 .$' .56 '.3" 2 2.3 2.4
Gross rofit 6 'argin Selling, General and EBITDA 6'argin Depreciation Expense EBIT 6'argin Taxes EBIAT Plus=&e*!ecaton an amo!t. #ess= "a*tal ;*entu!es
#ess=nc.ec. n '(" 9nlevered .C. 0ACC
8.97%
Disco&nt eriod Disco&nt .actor % of .C.
Enterprise %al&e C&m&lative % of .C.
8.23
(er)inal *alue er"i*al ear EBD Eit ultiple (er)inal *alue Dic-u*t act-r * o+ ter)inal *alue % -f E*terprie alue
11.1 2.86 31.746 0.650827 20.66 72%
,nterprise *alue
28.90
28.90
1.9
E*terprie alue Eit ultiple 2.4 2.9
8.0%
C C 8.5% A 9.0% -
9.5% 10.0%
C C A -
28.93 8.0% 8.5% 9.0% 9.5% 10.0%
1.9
"plie ,:are ;rice Eit ultiple 2.4 2.9
CAR 2001 !<98=<01$ ! 5".# 3.10%
2002 ! 55.3
2.05%
37.2 ! 7.6& 32.12% 11.9 000 10.4% 2.3 000 6.2% 1.36 '.&" 2.3
2003 ! 5#.6
0.91%
2.57%
2.32%
1.53%
1.53%
37.9 7." 31.46% 12.3 5.1 9.2% 2.1 3 5.4% 1.2 1.8 2.1
ro/ection eriod 2004 2005 ! 6'. ! 65.$
5.97%
5.97%
CAR 2006 ! 6$.# 4.47%
6.12%
5.92%
39.8 41.6 43.5 45.4 ! #.#& ! '&.5& ! ''."& ! '"."& 6.74% 32.08% 33.01% 33.99% 34.96% 12.3 12.4 12.5 13.3 6.5 8.1 >>> 11.1 14.31% 11.1% 13.0% 15.0% 15.9% 2.3 2.5 2.7 2.9 4.2 5.6 >>> 8.2 18.21% 7.2% 9.0% 10.9% 11.7% 1.68 2.24 2.88 3.28 2.52 3.36 4.32 4.92 18.21% 2.3 2.5 2.7 2.9 =4 =3.5 =3.6 =3.8
0.82
2.36
3.42
4.02
1 2 3 4 5 0.917684 0.84214349 0.772821 0.709206 0.6508265 0.75 1.99 2.64 2.85
Implied e*&it %al&e and S$are rice
E*terprie alue ?e@-tal DeAt ?e@ ;referre ,t-c# ?e@ '-* -*tr-lli*+ *teret ;lu@ a: a* a: Equivale*t
1)plied ,2uity *alue
Implied erpet&it Gr
= = 1
ully Dilute ,:are )utta*i*+
1)plied hare rice
3.4
3.9
28.90 =12
1)plied erpetuity rowth Rate 16.90 0.5840
er"i*al alue er"i*al alue
28.93
=0.01%
Implied E%/EBITD
E*terprie alue ? EBD
1)plied ,*4,B1(DA "plie ;erpetuity Cr-(t: R Eit ultiple 1.9 2.4 2.9
C C A -
3.4
3.9
8.0% 8.5% 9.0% 9.5% 10.0%
o8t$
2.85 9% 31.746 =0.01%
A
28.90 5.10 5.666 ate 3.4
3.9
